Peak shipping season is the time of the year when there’s a significant influx in e-commerce sales and shipment volume. During this time, customers are also busy placing items in their carts and eagerly awaiting their orders.
It’s an exciting and profitable time for the industry. However, this critical period also brings multiple challenges, particularly in logistics.
In this blog post, we describe the peak shipping season and how a 3PL partnership can help your business during this busy time.
What and When is Peak Shipping Season?
Peak shipping season happens in the fourth quarter, from October to December. Often, this period lasts until the new year.
During this time, there’s a high volume of orders, shipments, and returns to fulfil, mainly because the fourth quarter covers busy shopping days and major sales events.
In Australia, peak shopping holidays include Diwali, Halloween, Melbourne Cup, Black Friday, Cyber Monday, Christmas Eve and Day, Boxing Day, and New Year’s Day.
An influx of orders and shipments also happens during Australia Day, Click Frenzy, Prime Day, Christmas in July, and Labour Day.
How Can 3PLs Help Your Business During Peak Shipping Season?
When peak season starts, business owners should be ready to meet customers’ high demand while carefully watching their inventory and delivery schedules.
Having a reliable 3PL partner is one way to relieve some of the workload and handle your logistics needs efficiently. With 3PLs, your business can access the following features and services that suit busy shopping times.
1. Infrastructure, Equipment, and Manpower
Peak shipping season only happens at specific times of the year. So, it will be very costly for businesses, especially new and small ones, to build several warehouses and hire more staff to meet an occasional demand.
A third-party logistics provider has existing storage, equipment, and personnel to tackle a sudden or expected order surge.
With the help of a 3PL partner, you can lessen your reliance and expenses on seasonal business needs. More importantly, you can fulfil more orders, get optimum profit, and avoid shipping delays.
2. Fulfilment Technology and Automated Tools
Technology is a crucial consideration when choosing your 3PL partner. With systems in place, you establish better communication and minimise errors – both are essential during peak season.
Some of the technological functions to look for include:
- Demand forecasting system that predicts items that will be popular during the peak season. That way, retailers will know which supplies to order and stock up on. This system also helps prune low-performing SKUs and free up storage space.
- Order accuracy tool that prevents staff from picking and packing the wrong items. These can also automate packaging selection based on item dimensions or combinations.
- Inventory management software that lets retailers view their stock levels in real time. Also known as a warehouse management system, this technology helps businesses manage high inventory activity and replenishment needs during peak season.
3. Value-Added Services for Better Customer Experience
When order volume is high, customers’ expectations shoot up as well. Fulfilling both can be difficult without an extra hand.
However, with a 3PL provider’s value-added services, you can meet demands and still go the extra mile to keep customers happy.
Some relevant services during peak season are:
- Fast shipping options
- Custom packaging solutions
- Kitting
4. Streamlined Returns Management
More orders also mean higher return rates. Without an efficient returns management process, you might accumulate a significant backlog of returns and receive customer complaints.
Your 3PL partner can help you avoid post-holiday return delays, depending on their available solutions. For example, they may work with leading returns platforms to streamline the process.
Some providers may include a return shipping label on delivered packages. That way, customers do not need to ask customer support for assistance.
Check and ask about the specifics of this vital 3PL service while assessing a potential logistics partner.
5. Reliable Customer Support
Communication between clients and 3PLs is very crucial during peak shipping season. Aside from tracking systems and tools, a good 3PL offers customer support where you can contact real people who know your business and products.
When people are extra anxious about their orders and deliveries, reliable customer support lessens holiday stress and ensures a positive experience.
How Else Can You Prepare Your Business and Staff During Peak Season?
Partnering with a 3PL provider is only one solution to overcome the peak shipping season. Here are more tips to ensure your business is all set for this period:
- Prepare in advance. At least 1 to 2 months before the peak season, start analysing your sales data from the previous years. That way, you can identify market trends, forecast demand, ensure adequate stock, and contact suppliers early.
- Organise your team. Inform your team of the upcoming peak season and increased workload. Provide the necessary training so your staff can confidently handle challenges that may arise.
- Talk to your customers. Keep your customers informed about your offerings for the peak season and potential delays. Explain the systems in place so they can track their orders or process returns.
Prepare for Peak Shipping Season with an Experienced 3PL
A lot of things happen at once during the peak season. Losing focus will only result in poor customer experience, lost sales, and product returns.
Preparation is the key to beat the holiday demand. Also, you can outsource your logistics needs to a 3PL provider rather than manage multiple warehouses and hire more people.
Overcoming supply chain issues is possible with the extra resources, technology, value-added services, and efficient processes.
Get ready for the busiest times of the year and contact Effective Logistics today. Our team ensures the efficient fulfilment of high-volume orders.
